EKF Diagnostics Holdings plc Acquires Separation Technology, Inc.
EKF Diagnostics Holdings plc (AIM: EKF), the point-of-care diagnostics business, announces that it has acquired Separation Technology, Inc. ("STI"), the Florida based manufacturer of in vitro diagnostics ("IVD") devices for the haematology testing market for a cash consideration of $4.0m (c. £2.4m) to be satisfied out of current debt facilities. The acquisition of STI is expected to be earnings enhancing in 2014 and complements the Company's existing offering in the haemoglobin testing market place.
About Separation Technology, Inc.
STI develops, manufactures and markets specialty IVD devices including ultrasound instruments and table top centrifuges for the haematology testing market. STI also has an in-house engineering capability, including product design, production support and new product development. STI's revenues are currently concentrated in the US market (92% in 2013), however the business has sought to expand its offering into markets outside of the US and has recently registered products in Brazil (UltraCrit) as well as Kazakhstan, Russia and Thailand. STI currently employs 15 staff, is based in Sanford, Florida, USA, and is being sold by Thermo Fisher Scientific Inc.
STI's primary instrument is the ultrasound based UltraCrit haematocrit measurement device, which is FDA cleared for blood donor screening. The haematocrit reading is displayed automatically in about 30 seconds and provides a haematocrit value that allows for standardisation for all collections, including whole blood, apheresis and double red cell collections. UltraCrit uses reagentless cuvettes, a major point of differentiation between different analysers, given the relatively high cost of reagents in high-volume haematology testing. STI also manufactures a range of centrifuges including HemataStat, also used for haematocrit reading.
STI's revenue for the year ended 31 December 2013 was approximately $4.0m and EBITDA was approximately $0.5m. STI had net assets of approximately $1.0m at 31 December 2013. For more information: www.separationtechnology.com
Julian Baines, CEO of EKF commented: "The acquisition of STI is a great natural fit with our existing Point-of-care business, and UltraCrit provides us with a leading product for measuring haematocrit during blood donor screening with huge potential. The acquisition has been funded from our own resources and we expect it to be earnings enhancing from day one; so I am very confident that this acquisition represents a good value opportunity for EKF shareholders."